The Mosaic Company (MOS) has reported a 92.26 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $12 million, or $0.03 a share in the quarter, compared with $155 million, or $0.44 a share for the same period last year.
Revenue during the quarter dropped 13.92 percent to $1,862 million from $2,163.20 million in the previous year period. Gross margin for the quarter contracted 537 basis points over the previous year period to 11.06 percent. Total expenses were 96.05 percent of quarterly revenues, up from 90.56 percent for the same period last year. That has resulted in a contraction of 549 basis points in operating margin to 3.95 percent.
Operating income for the quarter was $73.60 million, compared with $204.30 million in the previous year period.
"Our fourth quarter results reflect strong market demand for potash and phosphates driven by improving market sentiment, as well as benefits from significant operational improvements," said Joc O'Rourke, president and chief executive officer. "Our cash production costs in Potash and our fourth quarter SG&A were at the lowest level in almost a decade." "While we are confident the market bottom is behind us, the pace of improvement is expected to be gradual. As a reflection of our commitment to investors to maintain a strong financial position, we have reduced our annual dividend payout to $0.60 per share."
Operating cash flow drops significantly
The Mosaic Company has generated cash of $1,266.10 million from operating activities during the year, down 29.96 percent or $541.50 million, when compared with the last year.
The company has spent $1,049.50 million cash to meet investing activities during the year as against cash outgo of $1,748.40 million in the last year.
The company has spent $888.60 million cash to carry out financing activities during the year as against cash outgo of $893.40 million in the last year period.
Cash and cash equivalents stood at $673.10 million as on Dec. 31, 2016, down 47.26 percent or $603.20 million from $1,276.30 million on Dec. 31, 2015.
Working capital declines
The Mosaic Company has witnessed a decline in the working capital over the last year. It stood at $1,580.90 million as at Dec. 31, 2016, down 24.59 percent or $515.50 million from $2,096.40 million on Dec. 31, 2015. Current ratio was at 2.07 as on Dec. 31, 2016, up from 2.02 on Dec. 31, 2015.
Debt comes down
The Mosaic Company has recorded a decline in total debt over the last one year. It stood at $3,947 million as on Dec. 31, 2016, down 8.60 percent or $371.40 million from $4,318.40 million on Dec. 31, 2015. Total debt was 23.44 percent of total assets as on Dec. 31, 2016, compared with 24.80 percent on Dec. 31, 2015. Debt to equity ratio was at 0.41 as on Dec. 31, 2016, down from 0.45 as on Dec. 31, 2015.
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